Energies 14 00635
Energies 14 00635
Article
Impact of the COVID-19 Lockdown on the Electricity System of
Great Britain: A Study on Energy Demand, Generation, Pricing
and Grid Stability
Desen Kirli * , Maximilian Parzen and Aristides Kiprakis
Institute for Energy Systems, School of Engineering, University of Edinburgh, Edinburgh EH8 9YL, UK;
m.parzen@sms.ed.ac.uk (M.P.); kiprakis@ed.ac.uk (A.K.)
* Correspondence: desen.kirli@ed.ac.uk
Abstract: The outbreak of SARS-COV-2 disease 2019 (COVID-19) abruptly changed the patterns
in electricity consumption, challenging the system operations of forecasting and balancing supply
and demand. This is mainly due to the mitigation measures that include lockdown and work
from home (WFH), which decreased the aggregated demand and remarkably altered its profile.
Here, we characterise these changes with various quantitative markers and compare it with pre-
lockdown business-as-usual data using Great Britain (GB) as a case study. The ripple effects on the
generation portfolio, system frequency, forecasting accuracy and imbalance pricing are also analysed.
An energy data extraction and pre-processing pipeline that can be used in a variety of similar studies
is also presented. Analysis of the GB demand data during the March 2020 lockdown indicates that
a shift to WFH will result in a net benefit for flexible stakeholders, such as consumers on variable
tariffs. Furthermore, the analysis illustrates a need for faster and more frequent balancing actions, as
a result of the increased share of renewable energy in the generation mix. This new equilibrium of
energy demand and supply will require a redesign of the existing balancing mechanisms as well as
the longer-term power system planning strategies.
Citation: Kirli, D.; Parzen, M.; Keywords: electricity system; COVID-19; electricity demand; energy; demand; behaviour; lockdown;
Kiprakis, A. Impact of the COVID-19 electricity pricing
Lockdown on the Electricity System
of Great Britain: A Study on Energy
Demand, Generation, Pricing and
Grid Stability. Energies 2021, 14, 635.
1. Introduction
https://doi.org/10.3390/en14030635
The outbreak of coronavirus disease 2019 (COVID-19) led to a lockdown on Wednes-
Received: 11 November 2020 day, the 23rd of March 2020 in the United Kingdom (UK). The government instructed that
Accepted: 18 January 2021 people should leave their homes only for purchasing necessities and exercising. People
Published: 27 January 2021 were only allowed to go to work if working from home (WFH) was not possible. Failing to
follow the new lockdown measures would lead to fines [1]. The strict lockdown ended on
Publisher’s Note: MDPI stays neu- Sunday, 10th of May and was replaced with a range of looser measures for the containment
tral with regard to jurisdictional clai- of the disease. However, WFH has become the new norm. These measures lead to a
ms in published maps and institutio- disruptive change in the electricity demand and influenced the wider energy sector. Energy
nal affiliations. companies in the UK warned about potential blackouts [2]. The analysis of this high impact
and low probability event is significant as any adverse effects on the electricity sector due
to future pandemics or lockdowns could be forecast using the insights of this analysis.
Studies such as [3] investigate ways to improve the power system resilience for high
Copyright: © 2021 by the authors. Li-
censee MDPI, Basel, Switzerland.
impact and low probability events under future climate and extreme weather conditions.
This article is an open access article
However, the impact of a pandemic such as the one experienced with COVID-19 is still
distributed under the terms and con-
unclear. The changes and trends in energy due to the pandemic are identified for de-
ditions of the Creative Commons At- mand [4,5], generation, grid stability [5] and various power markets [6,7]. Most of the
tribution (CC BY) license (https:// aforementioned analyses quantify changes by determining absolute or percentage change
creativecommons.org/licenses/by/ between pre- and post-lockdown periods.
4.0/).
As noted in [4], all analyses should be addressed with caution, since comparing
different timeframes in power systems is a challenge due to various distorting factors that
play a role such as weather, human behaviour and economic climate.
As a result, this study seeks to analyse the changes in demand, generation, grid stability
and market prices in a quantitative manner where changes are striking and choosing a
qualitative approach where the difference is ambiguous.
The main contribution of this paper is the systematic observation and analysis of
the effects of the COVID-19 lockdown in Great Britain on demand and operation of the
electrical power network, during its early weeks. Secondarily, we present the electricity
data pipeline employed for our analysis, which is also made available as open source.
The main highlights of this work are the following:
• This analysis characterises the changes in aggregate demand magnitude and profile
due to the lockdown with various quantitative markers such as load duration curve,
statistical distribution analysis and others.
• The ripple effects on the generation portfolio, system frequency, forecasting accuracy
and imbalance pricing are also evaluated.
• The effect of the lockdown on domestic consumers on a variable energy tariff is
identified and over 70 occurrences of negative pricing were detected.
• The implications of the lockdown are discussed for different stakeholders including
generators, industrial and commercial consumers, domestic consumers on both fixed
and variable tariffs, aggregators and demand-side response providers.
• The possibility of the lockdown data being an outlook for the future electricity sys-
tem in terms of flatter demand profile and increased contribution from the variable
renewable generators is discussed.
• The electricity data extraction and pre-processing pipeline that can be used in a variety
of similar studies is presented.
2. Methodology
In order to analyse the impact of the COVID-19 lockdown on the electricity market,
a systematic approach is used which involved creating an efficient pipeline to extract the
target data, pre-process, analyse and visualise. In this section, the methodology used in the
pipeline is explained. The instructions for future use are detailed using a flow diagram.
The Python code employed can be accessed at the GitHub repository [8]. Both pure Python
(i.e., py) and interactive Python notebook (i.e., ipynb) formats are made available. This
pipeline was used to create a clean and filtered dataset that consists of all of the data used
in the plots and analyses in this paper. This dataset is deposited in a public DataShare
repository—see [9].
6. Adjust the date and time format (e.g., change from half-hourly settlement period
convention (where 01:00 is denoted by 2) to time).
7. Save the adjusted data in CSV format with an automated title
(DataLabel_Week_starting_StartDate.csv).
8. Calculate statistical and other quantitative descriptors such as mean, peak-to-mean
ratio, etc.
9. Produce comparative visualisations of the data.
Figure 1. The flowchart displaying the steps for employing the data pipeline which are registering, accessing the code
repository and producing the results in order.
As shown in Figure 1, there are two prior steps to reaching the results stage where the
quantitative data descriptors are calculated and the results are visualised in a comparative
manner. The first step is to obtain an API key by registering on the Elexon website [11]—a
more detailed guidance on this is provided by Elexon [10]. Then, the pipeline can be
accessed from the GitHub website [8] and the API key obtained by the user should be input.
The default timeframes are set to the pre- and post-lockdown weeks used for this analysis
which commence on the 2nd and 23rd of March 2020. However, these can be adjusted
to the timeframe of interest. In addition to the system demand, this pipeline can be used
for all other data types provided by Elexon which are listed in [10]. The code can also be
modified to refer to any other website to execute a direct data extraction using API.
3. Results
In order to effectively present the impact of the COVID-19 lockdown on the GB elec-
tricity system, four main categories are identified and analysed: (1) the changes in demand
profile and volume, (2) generation portfolio; renewable and conventional generation shares,
Energies 2021, 14, 635 4 of 25
(3) forecasting and grid stability indicators and lastly (4) market prices, including day-
ahead wholesale market, system imbalance and variable prices for the domestic consumers.
Furthermore, the grid stability subsection inspects imbalance volume, system frequency
and the loss of load probability.
45000
,
40000
,
Demand (MW)
35000
,
30000
,
25000
,
20000
,
2020-03-02 2020-03-03 2020-03-04 2020-03-05 2020-03-06 2020-03-07 2020-03-08 2020-03-09
Date
Figure 2. Aggregated system demand before (w/c 02/03/20) and after (w/c 23/03/20) the coronavirus 2019 (COVID-19)
actions. Changes are observed in demand magnitude and profile with decreased demand after the lockdown.
Before assessing the impact of the lockdown on the power demand profile, it is im-
portant to quantify any change that was caused by any other external variables. The most
important factor affecting the power demand in GB is the weather, as it is highly corre-
lated with the energy demand for heating. In order to assess the weather-related impact,
the average temperature in Britain is compared for pre- and post-lockdown days. The daily
GB average temperature is provided by National Grid which uses data from six weather
stations around Britain [13]. Figure 3 shows the temperature difference with an average
value of 2.2 ◦ C. According to Thornton et al. [14], 1 ◦ C difference in temperature results in
approximately 1% change in the electricity consumption. Thus, the weather-related impact
is expected to reduce the consumption in the post-lockdown week by 2.2% when com-
pared with the pre-lockdown week. The maximum temperature difference of 4.2 ◦ C occurs
between the 5th and 26th of March which would decrease the post-lockdown demand
by 4%.
Energies 2021, 14, 635 5 of 25
Date
2020-03-22 2020-03-23 2020-03-24 2020-03-25 2020-03-26 2020-03-27 2020-03-28 2020-03-29 2020-03-30
12
10
Avergae Daily Temperature (⁰C)
0
2020-03-01 2020-03-02 2020-03-03 2020-03-04 2020-03-05 2020-03-06 2020-03-07 2020-03-08 2020-03-09
Date
Figure 3. Average temperature data in Britain for before (w/c 02/03/20) and after (w/c 23/03/20) the lockdown. The aver-
age difference between the pre- and post-lockdown weeks is 2.2 ◦ C.
As displayed in Figure 4, load duration curves show the base and peak demand
by visualising the relationship between sorted demand (i.e., ranked descending) and
exceedence. Whilst the base demand decreases by 10%, the peak and mean demand
drastically drop by 20% and 24%, respectively, following the start of the lockdown. As the
experienced decrease of power demand is an order of magnitude higher than what would
be expected to be due to temperature alone, it can be concluded that the change in demand
is predominantly driven by the lockdown rather than the change in the weather conditions.
40000
,
Demand (MW)
30000
,
20000
,
10000
,
0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95
Exceedence [%]
Figure 4. Load duration curve for pre- and post-lockdown actions (w/c 02/03/20 and 23/03/20)
showing the decrease in the post-action scenario with the highest decrease in peak and lowest in the
base load.
Energies 2021, 14, 635 6 of 25
The changes in the demand profile for peak, mean and base load are shown in Table 1.
The decrease in the energy demand is also observed as the area of the red plot (i.e., post-
lockdown) is smaller than the blue plot (i.e., post-lockdown) in Figure 4. A constant
demand would result in a flat load duration curve. This is evident in Figure 4, where the
post-lockdown plot (in red) is flatter than the one before the lockdown. This is a result
of the greater decrease in peak values in comparison to the base. Flattening the demand
curve means the prime time peaks such as the morning pick-up and the evening demand
surge are now less pronounced. Such peaks increase the difficulty of matching demand
and supply, puts the grid under stress and also increases the stress on thermal generation
and storage to meet the demand. The ripple effects include congestion and high imbalance
and transmission charges.
Table 1. Changes in demand profile using the data from the load duration curves.
Figure 5 displays the pre- and post-demand histograms where the post-action demand
is shifted to the left, indicating lower loads. The peak for the post-action demand shows
that the range of the most frequently occurring demand values is now narrower, meaning
there is less variation. Otherwise, the pre-action demand shows a more dispersed profile
with a bi-modal distribution. The concentration and higher rate of occurrence around
26,000 MW also reflect that the time series of demand is flatter.
1e-4 1e-4
0.0002.00 0.0002.00
0.0001.75 0.0001.75
Normalised Rate of Occurrence
0.0001.50 0.0001.50
0.0001.25 0.0001.25
0.0001.00 0.0001.00
0.0000.75 0.0000.75
0.0000.50 0.0000.50
0.0000.25 0.0000.25
0.000000
20,000 25,000 30,000 35,000 40,000 45,000 20,000 25,000 30,000 35,000 40,000 45,000
Figure 5. Comparison of pre and post-lockdown demand histograms with normalised occurrences. The range of colours
from yellow to dark blue correspond to the highest and lowest values. The post-lockdown shape is smoother and occurrence
concentrates only once around 26 MW. Whereas, the pre-lockdown distribution has multiple modes as shown by the
running average curve in orange. The plot on the left represents w/c 02/03/20 and the one on the right represents w/c
23/03/20.
Figure 6 uses a ratio of the standard deviation over the mean in order to quantify
the variation in the consumption profile. It suggests an overall lower variation in the
post-COVID-19 profile with a largest variation in the morning with respect to the mean.
The evening variation coefficient is remarkably lower. The overall standard deviation
of the post-lockdown week is a third of the pre-lockdown week. Hence, it supports the
observation that the post-lockdown demand profile is flatter. Figure 6 reflects an hour
Energies 2021, 14, 635 7 of 25
delay in the morning peak (i.e., 8 to 9 a.m.) and a changed evening profile. Regarding
the evening demand surge, it should also be noted that Figure 2 shows steeper evening
peaks as the morning peaks become less pronounced for the lockdown week. For instance,
on average the pre demand used to have a 7500 MW increase over 4 h to the evening peak
whereas the post-action demand escalates by 9500 MW in 5 h. Despite the longer increase
time, the relative increase is higher.
0.16 0.16
0.14 0.14
Variation Coefficient
Variation Coefficient
0.12 0.12
0.10 0.10
0.08 0.08
0.06 0.06
0.04 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 0.04 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
time time
Figure 6. Comparison of variation coefficient to visualise the changes in system demand. The magnitude of the variation
coefficient decreases in the post-case, the morning peak is delayed by an hour and the variation in the evening peak is less
pronounced. The plot on the left represents w/c 02/03/20 and the one on the right represents w/c 23/03/20.
It could be speculated that this is due to the human behaviour change as the common
9 a.m. to 5 p.m. working routine may not apply to all WFH. Hence, the delay in the
morning peak may suggest a later wake-up time and earlier pick-up in the evening may be
associated with the increased demand for heating, cooking and similar.
and low demand case, respectively. The scale for demand and generation in Figure 7, rep-
resents approximately real observed data from GB. In the example, the demand reduction
of 25%, which was recognised in the first week after the lockdown, led to an absolute RES
share growth of 8%.
As a result of Figure 7 and the requirement of scheduling RES before conventional
generators, the average demand reduction leads to higher RES shares in the long term.
If the data from Figure 7 are representative for longer periods, they further indicate that
the RES share could increase in the range of 5–10% in the GB system due to the lower
demand profile.
40000
34 GWGW 25 % 40000
34 GWGW 25 %
30000 GW
27 GW 30000 GW
27 GW
Δ 8% 33 %
25 %
8.5 GW 8.5 GW
RES RES
25.0%
Figure 7. An illustrative example of the impact of demand changes on the renewable energy sources (RES) share for typical
UK RES conditions. The RES share grows under the assumption of constant RES output before and after the demand
changes. The RES shares are kept constant in order to point out the impact of a lockdown.
Table 2. Comparison of descriptors to quantify the changes in the system frequency pre- and post-
lockdown mitigation actions. The increase in the post-action minimum and maximum frequency is
highlighted by the red text colour.
Hence, a normalised occurrence study is carried out to assess the distribution of system
frequency in Figure 8. The distribution for the post-action data has more defined peak
around 50 Hz and its distribution width from 49.9 to 50.1 Hz is narrower. This suggests
that the frequency was maintained within a stricter window than the pre-action week.
The concentration of occurrence is below 50 Hz pre-lockdown whilst values above the
nominal values are recorded more frequently after the lockdown (where the range of
colours from yellow to dark blue in Figure 8 represents the highest to lowest occurrence,
respectively). Hence, this displays a shift in the system frequency distribution, pointing
out the increase in high frequency records.
Energies 2021, 14, 635 10 of 25
5 5
Normalised Occurance
4 4
3 3
2 2
1 1
0 49.8 49.9 50.0 50.1 50.2 0 49.8 49.9 50.0 50.1 50.2
Pre Frequency (Hz) Post Frequency (Hz)
Figure 8. Comparison of pre- and post-action system frequency histograms. The plot on the left represents w/c 02/03/20
and the one on the right represents w/c 23/03/20. The post-action frequency distribution is concentrated more in the range
of 49.9 to 50.1 Hz.
One reason for this may be the decreased load profile, resulting a generation surplus,
thus increasing the frequency—as discussed in Section 3.1. A peak-to-mean analysis is
performed on both pre- and post-action data to compare the degree of variation—as shown
in Figure 9. The frequency data is indexed by the time of the day. The most significant
observation is regarding the high peak-to-mean ratio calculated for 8 p.m. for the post-
lockdown week. This may be because of the unforeseen changes in the shape of the
consumption profile—this is discussed in Section 3.1.
0.0050 0.0050
0.0045 0.0045
Peak-to-Mean Ratio
Peak-to-Mean Ratio
0.0040 0.0040
0.0035 0.0035
0.0030 0.0030
0.0025 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 0.0025 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Time Time
Figure 9. Comparison of hour-indexed peak-to-mean ratios for system frequency, showing an increase in 8 p.m.
high frequency occurrence post-lockdown. The plot on the left represents w/c 02/03/20 and the one on the right represents
23/03/20.
Energies 2021, 14, 635 11 of 25
Figure 10. Illustration of the forecast lengths for the total day-ahead load forecast (DAF) and the final transmission system
load forecast (TSF).
DAF and TSF forecast errors reveal different characteristics due to the lockdown.
The DAF forecast is improved while the TSF forecast does not reflect clear changes. This is
shown in Figure 11. The forecast error is evaluated by one of the most common performance
indicators, namely the mean absolute percentage error (MAPE) [23,25]. MAPE functions
well as a forecast performance indicator when employing historical data. Nevertheless,
for prediction model selection and estimation it is biased [26]. As only historical data are
analysed in this study, this makes MAPE a suitable indicator.
Energies 2021, 14, 635 12 of 25
In general, the longer the forecast length is for the same point in time, the higher the
forecast error becomes [27].
9.0%
8.0%
MAPE
7.0%
6.0%
5.0%
Lock-down
Wednesday, CW 13
4.0%
3.0%
2 3 4 5 6 7 8 9 10 11 12 13
Calendar week
2.00%
Mon - Sun 2020
Wed - Fri 2020
MAPE
1.50%
Mon - Sun 2019
Wed - Fri 2019
1.00% Lock-down
Wednesday, CW 13
0.50%
2 3 4 5 6 7 8 9 10 11 12 13
Calendar week
Figure 11. Weekly aggregated total DAF and final TSF error, for the timeframe from (i) Monday to
Sunday and (ii) Wednesday to Friday for 2019 and 2020. Note: The Wednesday to Friday frame
was used to show the impact of the lockdown from a workday perspective. The lockdown led to a
significant improvement of the DAF, while the TSF experience minor changes.
Therefore, the DAF constitutes a higher forecast error than the TSF. With regards to
the lockdown effects, the improved forecast accuracy for the DAF is especially remarkable
when distilling the timeframe on the weekdays from Wednesday to Friday, which starts on
the day the lockdown was initiated. The typical working week differs from the lockdown
working week and the weekend is more similar to the lockdown weekend. Hence, the effect
of the lockdown would be overlooked if the analysed timeframe was for the whole week.
On the contrary, no such effects are observed for TSF, which implies that the shorter-term
forecasts are less subject to the lockdown effect.
The change in the forecast error cannot be solely traced back to the lockdown, since
the forecast error is affected by many factors. In [27], a list of components affecting the
Energies 2021, 14, 635 13 of 25
forecast errors is given. Nevertheless, in particular, the DAF analysis shows a change
of magnitude that could indicate that the lockdown improved the day-ahead forecast.
One reason could be the smoother, less variable demand profile which was recognised in
Section 3.1. Even though the impact of the TSF change cannot be directly linked to the
lockdown due to minimal visible changes, in combination with the imbalance findings in
Section 3.3.3, the short-length forecast accuracy evidently decreased.
70%
2.0%
60%
1.5% 50%
RES share
40%
Lock-down
1.0% 30%
20%
0.5%
10%
0.0% 0%
2 3 4 5 6 7 8 9 10 11 12 13
Calendar Weeks
Figure 12. The weekly average share of imbalance volume factorised by the actual total load for 2019
and 2020. There is a significant imbalance increase during lockdown week.
After the lockdown, the higher share of RES seems to be the main driver for the
increasing imbalance in the power system. In Figure 13, the imbalance volume was
weighted to the actual total system demand for a pre- and post-lockdown week and
additionally shows the RES share for the same period. The correlation between weighted
Energies 2021, 14, 635 14 of 25
imbalance volume and the RES share after the lockdown is remarkable which indicates that
the increasing RES share is the main driver for the higher imbalance volume. The reason
for that cannot be precisely untangled as the following four points can cause an imbalance:
generation and demand prediction errors, network constraints and the balance need
at every instance. One possible high impact factor could be that the machine learning
approaches used by National Grid to forecast embedded RES output and load changes
together, had difficulty adapting [28]. However, analysing the past data reveals that the
correlation might not be permanent. When analysing data from January to March, only a
correlation between RES share and imbalance volume was discovered roughly at 20% of
the time.
Figure 13. Daily average share of imbalance volume and share of RES for the pre- and post-lockdown week, 2nd–9th
March and 22nd–28th March, respectively. There is a strong correlation between the post-lockdown RES share and
imbalance volume.
The effect of higher RES shares explains the slightly poorer performance of the short-
length load forecast TSF, as embedded RES, which consisted of 13 GW solar and 6 GW wind
capacity in 2018, cause load forecast errors [27,28]. On the contrary, the DAF improved,
so there might be a trade-off between the benefit of smoother load profiles and the negative
influence of high RES shares on the forecast errors. To summarise, it seems that depending
on the forecast length, the lockdown causes improved or worsened load forecast perfor-
mance (see Figure 14). The short-length load forecasts decrease in performance, while the
longer ones increase.
Energies 2021, 14, 635 15 of 25
DAF
Forecast length
- higher share of RES
TSF
performance
Drop in
Imbalance
Volume
Figure 14. Illustrative effect of the lockdown on the forecast accuracy compared to pre-action weeks. TSF and DAF indicate
the transmission system forecast and total day-ahead forecast, respectively, as described in Section 3.3.2.
Reserve Scarcity Price = Loss o f Load Probability × Value o f Lost Load (2)
Due to the abrupt changes in the demand profile and eventually the inflexibility of the
available generation, National Grid predicted a higher LOLP during the evening of the 25th
of March which was the first official day of lockdown. Despite the fact that it was predicted
12 h in advance, the hour ahead LOLP forecast was 4.5 times higher. This implies that there
was a reserve scarcity and/or that the grid was under stress. On the 4th of March, due to
reserve scarcity, the system price increased to £2242/MWh in at 17:00 which is the highest
recorded value in the last 19 years and almost 20 times higher than the maximum system
price in February which was £120/MWh [7].
price as a result of the intersection of the supply and demand curves. The demand is
given as net demand which subtracts the RES generation from the total demand. This is a
common strategy to illustrate the merit order, since the solar and wind generation plants
have marginal cost close to zero, making them always dispatched as long as no network or
other operational constraints exist [15].
RES increase
= CCGT
Wholesale market
price decrease
Nuclear
Biomass
Figure 15. Illustrative effects of the COVID-situation on the wholesale market price. The wholesale
market price reduces due to COVID. The higher RES share after the lockdown lowers the net demand
which leads to a wholesale market price reduction.
For the purpose of energy balancing, the system operator might additionally purchase
non-BM services as the “Balancing Service Adjustment Action” [32]. Drivers for such
an adjustment action could be economic, technical or operational for ancillary services
according to [19]. These non-BM actions are priced in capacity, energy or both ways and
form balancing service adjustment data, consisting of the adjusted buy and sell prices,
which adjust the imbalance price of the previously described BM [19,32].
The system balancing actions, otherwise, are only a part of the non-BM actions [19].
They describe balancing actions which keep the energy equilibrium at every instance.
For example, a wind power plant might generate the exact energy amount contracted by
the physical notification for the 30-minute settlement period; however, its power might
fluctuate and mismatch the demand in the settlement period making system balancing
actions, such as activation of a non-BM STOR unit, necessary [19]. The pricing scheme for
the system balancing actions is equal to the energy balancing scheme for non-BM actions,
described in the previous paragraph.
Figure 16 illustrates the weekly average imbalance price development in 2019 and
2020. While both years show similar price variations, a significant price difference exists.
This is caused by a regulatory change of the balancing mechanism which started accepting
smaller generators in the range between 1–100 MW in 2020 [33,34]. This suppresses the
imbalance price through competition. The imbalance price during the lockdown is showing
an unclear trend. As described in the above paragraphs, the imbalance price is a complex
construct. Due to the substantial changes in the BM in 2019 and 2020, it is not possible to
draw a conclusion from this comparison to assess the COVID-19 lockdown effect.
60
Imbalance price [£/MWh]
50
40
30
BM includes
20 since 2020
plants between
10 1-100 MW Lock-down
0
2 3 4 5 6 7 8 9 10 11 12 13 14
Calendar Weeks
Figure 16. The impact of lower demand on the imbalance price is not clear. Variation and trends observed in both 2019 and
2020 are similar. The observed price difference between the years is caused by wider access to balancing mechanism.
The impacts of the lower demand could potentially both increase and decrease the
imbalance price (see Figure 17). The balancing service options are generally chosen fol-
lowing a merit order if no system operation limitation exists. Therefore, similar to the
wholesale market price settlement, a higher demand would lead to higher prices and
cheaper generators could lower the price or vice versa. The imbalance volume and how it
Energies 2021, 14, 635 18 of 25
can increase the price is explored in Section 3.3.3, which imply a higher need for balancing
services. Moreover, on average, a lower demand (as shown in Section 3.1) would poten-
tially free up more generation units that can provide additional cost-effective balancing
services. As a result, the imbalance price could increase or decrease. Additional factors
also affect the price including the LoLP, VoLL, de-rated margin, voltage-related services
and network utilisation.
More flexible
generators Higher
available imbalance
volume
Decrease in Increase in
imbalance price imbalance price
Figure 17. Illustrative example of the impact of lower demand on the imbalance price. Multiple
factors impact the imbalance price in different ways. One effect that reduces the imbalance price
is that more flexible conventional plants are available due to the lower demand and higher RES
share. In contrast, the observed higher imbalance volume increases the price as the more expensive
resources must be used (similar to merit order).
(See Section 3.3.4 for more information). The week commencing on the 30th of March 2020
is of interest for comparison with the other extreme, namely negative pricing, as it drops to
near −3 p/kWh. Similar to the analysis in Section 3.1, the reduction in demand magnitude
and changes in profile are correlated to the changes between pre- and post-action pricing
Octopus Agile Negative Pricing pre- and post-COVID-19 Mitigation Actions
profiles in Figure 18.
Date
2020-03-30 2020-03-31 2020-04-01 2020-04-02 2020-04-03 2020-04-04 2020-04-05 2020-04-06
35 Pre
Post
30
25
Price per unit (p/kWh)
20
15
10
5
2020-03-02 2020-03-03 2020-03-04 2020-03-05 2020-03-06 2020-03-07 2020-03-08 2020-03-09
Date
Figure 18. Examples of price capping (5 March 2020 on the lower orange x-axis) and negative pricing (5 April 2020 on the
higher green x-axis) during pre- and post-lockdown weeks, respectively, using the data from [37].
Since the launch of the agile tariff, there had been 96 occurrences of negative pricing
(i.e., price < 0 p/kWh). Almost 70% of these events (i.e., 67 out of 96) took place after the
lockdown started. Table 3 summarises the negative pricing events before and after the
lockdown, highlighting the highest price the consumers were paid to use electricity and
the corresponding dates.
Table 3. Analysis of negative pricing in the agile tariff using the data from [37].
Octopus also provides variable pricing for selling electricity [36]. The corresponding
sell prices are plotted in Figure 19. The highest sell price around 19 p/kWh was recorded
which corresponds to the day with the highest system price since 2001. The benefit is
passed on to the distributed generators. In the case of negative load pricing when the
consumers were paid to use electricity on the 5th of May, there was also negative pricing for
exporting electricity (i.e., generators pay to export electricity). The pricing for generation is
capped at a minimum of 0 p/kWh which indicates that the energy was exported for free
during that period as shown in Figure 19.
Energies 2021, 14, 635 20 of 25
Octopus Agile Negative Outgoing Pricing pre- and post-COVID-19 Mitigation Actions
Date
2020-03-30 2020-03-31 2020-04-01 2020-04-02 2020-04-03 2020-04-04 2020-04-05 2020-04-06
20.0 Pre
Post
17.5
15.0
Price per unit (p/kWh)
12.5
10.0
7.5
5.0
2.5
0.0
2020-03-02 2020-03-03 2020-03-04 2020-03-05 2020-03-06 2020-03-07 2020-03-08 2020-03-09
Date
Figure 19. Corresponding agile outgoing sell prices using the data from [37], that show a high sell price reflecting the
reserve scarcity (5 March 2020 on the lower orange x-axis) and a capped price of 0p/kWh (5 April 2020 on the higher
green x-axis).
4. Discussion
In Section 3, four main categories of results were presented, namely: (1) the changes
in demand, (2) generation portfolio, (3) forecasting and grid stability and lastly (4) market
prices. In this section, these results are evaluated and their impact on different stakeholders
are discussed. Following this, the limitations of the results are addressed along with
suggestions for future work.
The key results are summarised in Figure 20. They indicate that the grid is still reliable
and stable but operates under stress. More detailed explanations of each point here can be
found in Section 3.
Grid Stability
Demand Generation Load Forecast Market Prices
Indicators
Figure 20. Summary of key results. The asterisk (*) notes that the effect of some factors such as economic climate were not
taken into account. More details on whether these changes are representative are in Section 3.
Energies 2021, 14, 635 21 of 25
RES increased. Secondly, the current power system is supported by inflexible nuclear and
gas plants which might change in the future due to the increasing amount of flexibility
services such as DSR. Lastly, the current network is comparatively oversized due to the
lower load. The same network at higher RES share could lead to more congestion in a
future power system.
One of the most important aspects of planning for a future power system is consid-
eration of network congestion that is expected to occur as RES share increases. During a
lockdown, the network usage is expected to decrease on average but some sections might
be loaded more than usual. The lower average demand in GB implies that less energy is
transported through the power lines which results in reduced network usage and losses.
However, loading of some other network sections could increase as centralised renewable
energy sources would transport energy for longer distances. For instance, the large wind
generation capacity installed in Scotland provides more energy to the southern parts such
as London. As the net consumption in GB decreases, less energy is locally consumed in the
north and may lead to higher network loads along the transmission lines when there is
generation from wind and/or solar. Therefore, despite the decreased load, some parts of
the network are likely to experience higher congestion.
For data with high temporal resolution such as frequency and demand, there are many
variables that affect long-term (i.e., 2019 vs. 2020) comparison including weather conditions,
availability of generators, increase in demand and generation, network management
actions, etc. This is a known challenge that has been the subject of previous studies such
as [39]. Hence, the long-term comparison is limited to the weekly average values in this
study. In terms of short-term comparative analysis (i.e., pre- and post-lockdown days—up
to a week), the effect of the weather data such as humidity, temperature and wind speed
are not taken into account. This is because the effect of weather conditions and other
socio-economic impacts are observed to be less significant in comparison to the effect of
this major socio-economic event, namely the lockdown due to the spread of COVID-19
in GB.
The outcomes of this analysis may be used for predicting the response of the electricity
market to another low probability and high impact event in the future.
5. Conclusions
The outbreak of COVID-19 disrupted the patterns in electricity consumption, challeng-
ing the system operations of forecasting and balancing the supply and demand. This is due
to the mitigation measures that include lockdown and WFH which decreased the aggregate
demand by 25% and remarkably flattened its profile. These changes were characterised
with various quantitative markers and compared with pre-lockdown business-as-usual
data using the case study of Great Britain. Similar observations have been made in different
countries such as Australia [42] and Italy [43].
The ripple effects on the generation portfolio revealed a 5 to 10% higher RES share
and decreased operation of conventional plants. The system stability indicators suggest
that the grid operated well but was under stress. The indicators include some remarkable
LoLP events and overall higher system frequency. However, other contrasting findings
show 3 to 5% more accurate day-ahead load forecasts. The energy market is also greatly
affected by the change in consumption pattern. The wholesale market price decreased due
to RES generators ranking higher on the merit order. Whilst the imbalance prices increased
due to the higher imbalance volume in the system, this increase was compensated by the
larger number of available generators due to the decreased demand volume.
An alternative pricing mechanism was also investigated for domestic consumers.
With over 70 events of negative pricing, it was shown that the new pricing scheme would
have benefited consumers with flexible load such as an EV. Despite the overall drop in the
prices due to the decrease in wholesale market price, there were some LoLP events that
increased the system price as much as £2242/MWh which is the highest in the last 19 years
and almost 20 times higher than the month preceding the lockdown (February 2020).
Four main categories of results presented, namely: (1) the changes in demand, (2) gen-
eration portfolio, (3) forecasting and grid stability and lastly (4) market prices Section 4
assessed their impact on different stakeholders such as system operators, suppliers and con-
sumers. Following this, the limitations of the results were addressed along with suggestions
for future work.
The proposed open-source energy data extraction and pre-processing pipeline can be
used in a variety of similar studies—see Figure 1. It can be useful for both academic and
industrial research in electricity markets, trades and forecasts as it simplifies the procedures
of data extraction, pre-processing and visualisation.
Author Contributions: Conceptualization, D.K., M.P. and A.K.; methodology, D.K.; software, D.K.;
validation, D.K., M.P. and A.K.; formal analysis, D.K and M.P.; investigation, D.K. and M.P.; resources,
D.K., M.P. and A.K.; data curation, D.K.; writing—original draft preparation, D.K. and M.P.; writing—
review and editing, D.K., M.P. and A.K.; visualization, D.K. and M.P.; supervision, A.K.; project
administration, D.K. and A.K.; funding acquisition, A.K. All authors have read and agreed to the
published version of the manuscript.
Funding: This research was funded by EPRSC Doctoral Training Partnership (EP/R513209/1) and
the EPSRC Centre for Energy System Integration (EP/P001173/1).
Institutional Review Board Statement: Not applicable.
Informed Consent Statement: Not applicable.
Data Availability Statement: The data presented in this study are openly available in DataShare at
https://doi.org/10.7488/ds/2979 [9].
Acknowledgments: The authors would like to acknowledge Elexon and Energy Stats UK as this
paper contains BMRS data © (Elexon Limited copyright and database right [2020]) and Octopus
Agile tariff data provided by the energy-stats.uk website.
Energies 2021, 14, 635 24 of 25
Conflicts of Interest: The authors declare no conflict of interest. The funders had no role in the design
of the study; in the collection, analyses or interpretation of data; in the writing of the manuscript, or
in the decision to publish the results.
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